Grant Thornton Cites Entrex as Alternative Market Structure to Replace the Broken IPO Model
Updated analysis of the IPO market crisis offers foundation points for an ideal alternative market—acknowledging the SEC’s vital regulatory role.
CHICAGO, July 14, 2010 -
The recently released Grant Thornton white paper entitled “Market Structure is Causing the IPO Crisis—and More,” authored by Capital Markets Senior Advisors David Weild and Edward Kim, brings current the available market data (December 2009) and “next step” ideologies from two previously published high-profile studies.
In this report authors express that the significant decline in the number of IPOs brought to market each year is having a critical effect on the overall U.S. economy. Specifically, they discuss a systemic failure of the U.S. capital markets to support healthy IPO and robust small cap markets and indicate that this is inhibiting the U.S.’s ability to innovate, create jobs and grow. Their urgency is made clear when noting America’s continuous double-digit unemployment and overall assessment that the failure of the U.S. capital markets structure can no longer be ignored.
Entrex is cited as one current solution-oriented alternative in their discussion of existing and developing market structures supporting liquidity and capital acquisition—for small-cap companies especially.
Entrex CEO, Stephen H. Watkins, says he agrees 100% with the messaging in the white paper and hopes that thought leaders continue to see Grant Thornton’s work as a call to action, arising from the analysis of this critical economic data.
The authors’ previous white papers were lauded by the National Venture Capital Association (NVCA) and Senator Ted Kaufman (D-Del) as clear illustrations of the current state of affairs.
Watkins states, “The authors aren’t trying to create some kind of underworld market. Rather, they suggest a sensible framework that includes the SEC’s active role as oversight body, use of brokerage firms for trading and mandatory research coverage standards for listed stocks.”
He continues with the thought that “as Entrex develops, in tandem with the twists and turns of our current capital markets structure, we’re in a unique position to be a key player in an upcoming alternative market that’s efficiently meeting the needs of both issuers and investors through a combination of entrepreneurial ingenuity and reliance on existing competent investment market practices.”
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